BOSTON – Portsmouth-based boatyard, New England Boatworks Inc. will pay a $31,500 penalty and take steps to reduce air emissions at its facility under a settlement with the U.S. Environmental Protection Agency, the EPA announced Wednesday.

Under the settlement, which was agreed upon to resolve allegations of Clean Air Act violations, New England Boatworks will obtain a Clean Air Act permit from the state of Rhode Island that caps the facility’s emissions of volatile organic compounds.

Paint used by the company emitted excess levels of these compounds, which can cause human health problems and contribute to the formation of ground-level ozone, a primary constituent of smog, according to the EPA.

Under its Clean Air Act permit, New England Boatworks will be required to use low-VOC solvents and paints that comply with regulatory limits.

The company will also be required to use paint spray guns with high transfer efficiencies, implement bets work practices to minimize VOC emissions from painting and cleanup and implement recordkeeping and reporting requirements.

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